Hong Kong stocks log biggest drop in 3 weeks as US tariff rulings roil markets
Hong Kong
stocks dropped by the most in almost three weeks, paring a monthly gain, after a US appeal court allowed President Donald Trump's 'reciprocal tariff' to stay in force.
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The Hang Seng Index slipped 1.6 per cent to 23,203.49 as of 10.11am local time on Friday, set for the biggest loss since May 13. The Hang Seng Tech Index slumped 2.5 per cent. On the mainland, the CSI 300 Index lost 0.8 per cent and the Shanghai Composite Index retreated 0.6 per cent.
Instant noodle maker Tingyi tumbled 6.3 per cent to HK$12.68 and shipping lines Orient Overseas sank 5.4 per cent to HK$137. Alibaba Group Holding declined 3.6 per cent to HK$113.90 and Tencent Holdings slipped 2 per cent to HK$500.50.
The US Court of Appeals for the Federal Circuit in Washington on Thursday granted an order allowing the Trump administration to impose so-called reciprocal tariffs on national security reasons. A US federal court had earlier blocked the tariffs, saying Trump overstepped his authority in his April 2 tariff plans.
Despite this week's wobble, Hong Kong's stock market remained on an uptrend with a 5 per cent gain in May. Prices rebounded after China and the US reached a 90-day truce on the tariff war, and the People's Bank of China cut borrowing costs to revive consumption and home purchases.
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The Hang Seng Index has recovered all of April's 4.3 per cent loss triggered by Trump's 'Liberation Day' punitive tariffs on April 2, as well as separate sector-specific duties on certain industries and products.
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